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      (This article was published on 13 January 2025 and updated on 14 May 2026)

      Highlights

      – Setting and maintaining IFRS® Sustainability Disclosure Standards

      – Connecting financial and sustainability reporting

      – Other updates

      – Revisions apply immediately

      The Due Process Handbook of the IFRS Foundation outlines the processes to follow when setting and maintaining IFRS® Accounting Standards.  

      The Trustees of the IFRS Foundation have updated the Handbook to:  

      • specify formally the due process for setting and maintaining IFRS Sustainability Disclosure Standards; 
      • introduce processes to drive connectivity between financial and sustainability reporting; and 
      • provide clarifications and enhancements in other areas.
      Brian O'Donovan
      Brian O'Donovan

      Global IFRS and Corporate Reporting Leader

      KPMG International

      A robust, transparent and inclusive due process is the cornerstone of high-quality standards. The updates are timely and respond to the needs of users.

      Brian O’Donovan

      Global IFRS and Corporate Reporting Leader

      KPMG International

      Setting and maintaining IFRS Sustainability Disclosure Standards 

      Since its inception, the International Sustainability Standards Board (ISSB) has been developing new standards according to the process that was originally specified in the Handbook for the International Accounting Standards Board (IASB).

      The Trustees have revised the Handbook to:

      • formally specify the ISSB’s due process; 
      • include specific due process for SASB1 Standards and the related taxonomy; and
      • clarify that the IASB and ISSB follow the same due process, except for some specific differences.

      Connecting financial and sustainability reporting

      The IASB and ISSB aim for their respective requirements to work well together to provide a comprehensive package of information for users. To better meet this objective, the revisions introduce a process to:

      • facilitate knowledge sharing and coordination between the IASB and ISSB;
      • consider opportunities for connections between the respective work plans of the IASB and ISSB; and
      • develop standards that are compatible and consistent with each other.

      Other updates 

      Other updates include the following.

      AreaWhat’s new?What’s the impact?
      Post-implementation reviews (PIRs)Objective and process – clarified
      • Focus is on whether new requirements are working as intended when developed and continue to work as intended in the current environment.
      • New rebuttable backstop that a PIR begins within five years of the effective date of the new requirements.
      • Emphasis that mechanisms other than PIRs exist to address application questions (e.g. TRGs2 and the IFRS Interpretations Committee).
      Minor improvements to IFRS Standards Scope – expandedAllows for the inclusion of minor or narrow-scope amendments to IFRS Standards or accompanying material (e.g. guidance or illustrative examples).
      IFRS Interpretations Committee – Criteria for a new standard-setting project ‘Widespread effect’ criterion – clarifiedA widespread effect is when:  
      • the circumstance or transaction is prevalent (or expected to be prevalent); and
      • there is diversity (or expected diversity) in the application of IFRS Accounting Standards.
      IFRS Interpretations Committee – Maintenance of agenda decisionsProcess – clarified Transparent and clear process for maintaining agenda decisions when the IASB issues new or amended accounting standards.
      Re-exposure criteriaRequirement to give more weight to changes in recognition and measurement – deletedChanges to disclosures have equal weight when considering whether re-exposure is necessary.

      Revisions apply immediately 

      The revised Handbook was published on 30 April 2026 and is effective immediately.

      1 Sustainability Accounting Standards Board (SASB).

      2 Transition Resource Groups (TRGs).

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